1. All members benefit equally. To motivate suppliers to help reduce costs and increase sales, successful companies reward them with a fair share of savings or profits.
2. A strong communication system. Whether it's notifications via e-mail, visual clues or even verbal cues, a strong communication system is must.
3. Long-term commitment. Building relationships for the long haul means not abandoning a supplier because another company is slightly cheaper.
4. Collaboration. Getting input from suppliers on new products, shipping, pricing, etc., reduces waste done the road.

Action Steps
The best contacts and resources to help you get it done

Tips & Tactics
Helpful advice for making the most of this Guide

• Get outside help if you need it or don't have the time to manage your supply chain. Software vendors often provide consulting services along with their products.
• Be aware that using overseas suppliers can have hidden complications such as added transportation costs, political disruptions, or varying compliance rules.
• Even while focusing on ongoing continuous improvement via metrics and benchmarking, choose "spot projects" for improvement. For example, some manufacturers have built such trusting relationships with their suppliers that they no longer inspect incoming materials, which decreases costs and improves cycle times.